AI Infrastructure Market size was valued at USD 37.1 billion in 2023 and is estimated to cross USD 872.9 billion by the end of 2036, expanding around 30.1% CAGR during the forecast period, i.e., 2024-2036. In 2024, the industry size of AI infrastructure is estimated at USD 47.3 billion.
The market expansion is primarily attributed to the increasing adoption of AI-powered chatbots across several smart devices. In July 2024, Google announced that Gemini will be incorporated into Samsung devices such as Z Fold6, Galaxy Watches, and the latest Galaxy Z Flip6. The Gemini application is available in about 200 countries and in over 29 languages. Moreover, AI is useful for handling Big Data, this includes hardware comprising graphics processing units (GPUs), Tensor Processing Units (TPUs), specialized AI chips, software frameworks, and tools for developing and implementing AI.
The available AI-powered chatbots cater to a wide array of applications. For instance, detailed, consistent, accurate, and human-like outputs are provided as a response that can be incorporated by interconnecting various workspace applications such as Google Meet, Sheets, Docs, and Slides using chatbots such as ChatGPT and Gemini. This will impact the chatbot during the forecast period.
Growth Drivers
Challenges
|
Base Year |
2023 |
|
Forecast Year |
2024-2036 |
|
CAGR |
30.1% |
|
Base Year Market Size (2023) |
USD 37.1 billion |
|
Forecast Year Market Size (2036) |
USD 872.9 billion |
|
Regional Scope |
|
Technology (Machine Learning, Deep Learning)
The machine learning segment in the AI infrastructure market is poised to capture a share of 59.1% in the coming years. This segment growth is augmented by the goal of machine learning (ML) which allows users to create algorithms and models. Attributed to which, computers comprehend the data to make predictions and judgments accordingly without the need to be programmed. Growth in this sector will boost machine learning in the near future.
Furthermore, the scalable cloud computing resources, allow businesses to easily implement ML models without having to invest in on-premises infrastructure. Because of various governmental regulatory standards such as HIPAA (Health Insurance Portability and Accountability Act) in the U.S. and GDPR (General Data Protection Regulation) in Europe, ML solutions are being adopted for data privacy, security, and reasons.
Offering (Hardware, Software)
The hardware segment is expected to be the fastest-growing segment with a substantial size during the forecast period. This growth is propelled by their ability to parallel processing, which makes several processes like training an AI model interface faster. For example, the NVIDIA AI GPU-accelerated AI platform serves as the foundation for the NVIDIA AI Workbench. Their Quadro and Tesla series are specially made to handle AI workloads. Additionally, in contrast to the fixed hardware structures of CPUs, GPUs, and FPGAs are made up of a variety of interconnected and programmable logic blocks that can be set up to perform specific hardware functions.
Our in-depth analysis of the global market includes the following segments:
|
Technology |
|
|
Offering |
|
|
End use |
|
North America Market Statistics
The AI infrastructure market in North America is slated to hold the largest share of 41.9% during the forecast period. The growth in this region is driven by the surge in data centers for its storage and processing. For instance, the United States International Trade Commission published a report in May 2021, estimating a 50% increase in the creation of new data as compared to 2020, surpassing 1.2 trillion gigabytes of data production. Owing to this the data center construction will show a tremendous growth rate in the forecast period.
In the U.S., there is a tremendous boost in the emergence of startups, which will act as a rising factor for the AI infrastructure industry as they will need more IoT. Additionally, the Center for American Progress in 2024 estimated an influence in the growth rate of about 16% between 2019 and 2023 in the number of startups and firms.
The prevalence of various cloud-based service providers in Canada such as Sync.com, Leonovus, and Eleks will demand AI infrastructure for enhanced functioning. According to the Cloud Computing Statistics in Canada 2024, about 92% of companies in Canada use some type of cloud computing. They set about 29% of the IT budget for cloud computing.
APAC Market Analysis
The AI infrastructure market in Asia Pacific will also encounter huge growth during the forecast period with a notable size, accounting for the second position. This growth is led by the increasing digitization in various sectors such as banking, telecommunication, healthcare, and automotive. American Medical Association in January 2024 surveyed 1091 physicians, and about 56.0% witnessed improved patient convenience, coordination, and safety after AI was incorporated into healthcare.
In China, investments from private and government sectors in digital infrastructure are boosting AI infrastructure. World Economic Forum 2023 estimated that by 2030 the internet economy in Asia is fueled to surpass USD 1 trillion, credited to the slated base of digital applications and consumers. This will significantly drive the AI infrastructure market.
Japan is predicted to have a high rise in technology coupled with several advancements and innovations in storage management software. A report published by the World Intellectual Organization in 2022 concluded that Japan ranked 11th for its inputs in innovation both in 2022 and 2021. Japan also ranks 12th in the top 48 economies of the high-income group.
 Infrastructure Market Size.webp)
The AI infrastructure market expansion is predicted to grow impelled by these companies occupying a lucrative share. Most of these companies are continuously collaborating, making agreements, expanding, and joining ventures for the growth of this industry. With the increasing presence of chatbots, and investments in computer-intensive chips various companies are adapting to the latest trends and are set to be the major key players in this sector.
Some of the key players include:
Author Credits: Abhishek Verma
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?